Energy costs squeeze 70pc of businesses, 76pc brace for further pain: HSBC 

Soaring energy bills, expensive raw materials and mounting working-capital needs are tightening the squeeze on Bangladesh's businesses, with 76 per cent of companies expecting operating costs to climb further over the next two years, a global HSBC survey has revealed.

Energy costs have emerged as the biggest business headache for half of the surveyed companies in Bangladesh, while 49 per cent identified higher raw material prices as a major challenge. 

Overall, 70 per cent of businesses are already grappling with rising operating expenses, exposing the growing pressure on their competitiveness and financial resilience.

The cost squeeze is also draining corporate liquidity. Around 64 per cent of Bangladeshi companies reported an increased need for working capital since 2025, reflecting the mounting funds required to sustain operations amid rising input prices and longer-term business uncertainties.

The findings were released on Sunday as part of HSBC's Global Trade Pulse Survey 2026, which captured the views of 10,000 senior business executives across 26 countries.

Despite the mounting pressures, Bangladeshi businesses are aggressively reshaping their supply chains to reduce vulnerabilities and strengthen operational resilience.

Around 55 per cent of local companies said they had taken steps to bring production and supply-chain operations back home or reorganise them, significantly exceeding the global average of 36 per cent.

Bangladesh is also moving ahead of the global trend in adopting the 'China Plus One' strategy, which involves diversifying sourcing and production beyond China to reduce excessive dependence on a single manufacturing base.

Some 57 per cent of Bangladeshi businesses said they had adopted the strategy, compared with the global average of 36 per cent, highlighting the country's growing focus on supply-chain diversification.

Yet, the survey revealed a striking contrast between rising business costs and confidence in global trade. As many as 91 per cent of Bangladeshi companies expressed confidence that international trade would grow over the next two years, with 56 per cent describing themselves as highly confident.

Businesses also reported positive results from their risk-management initiatives. Around 90 per cent said the measures they had adopted to manage risks were effective, while 81 per cent reported improvements in cash flow and working-capital positions as a result.

Technology is emerging as another major area of transformation. Some 86 per cent of Bangladeshi companies have already started using artificial intelligence (AI) in at least one trade-related activity, while 80 per cent expect greater investment in technological infrastructure to drive demand for their products.

However, optimism about global trade is being tempered by growing exposure to international policy uncertainties. Around 31 per cent of companies said tariffs and trade-related uncertainties had adversely affected their business operations, while 32 per cent reported a decline in revenue.

More concerningly, 37 per cent expect their revenues to fall over the next two years, substantially above the global average of 28 per cent, signalling persistent concerns over export demand, trade barriers and market volatility.

The survey also exposed a significant gap between access to free trade agreements and the ability to exploit their benefits. Although 96 per cent of Bangladeshi companies said they used at least one FTA, an overwhelming 97 per cent reported facing obstacles to fully benefiting from such agreements.

The survey was conducted across 26 countries between September 18 and October 6, offering a snapshot of how businesses worldwide are responding to shifting trade dynamics, rising costs and growing geopolitical and economic uncertainties.